BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 927| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 927 Author: Anderson (R) Amended: 3/31/16 Vote: 27 - Urgency SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 3/30/16 AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley SENATE ELECTIONS & C.A. COMMITTEE: 5-0, 4/19/16 AYES: Allen, Anderson, Hancock, Hertzberg, Liu SUBJECT: Public Utility District Act: election of directors SOURCE: Author DIGEST: This bill allows the Fallbrook Public Utility District's board members to be elected by subdistricts, rather than at-large. ANALYSIS: Existing law provides that members of most local governments' legislative bodies are elected using one of three methods: 1)An "at-large" election allows a voter residing anywhere within the local government's boundaries to vote for any candidate for the local government's governing board. SB 927 Page 2 2)A "by district" election allows a voter to vote only for a candidate who runs and resides in the same geographical district in which the voter resides. 3)A "from district" election allows a voter residing anywhere within a local government's boundaries to vote for any candidate for a local government's governing board, but each candidate must run in the geographical district where he or she resides. This bill: 1)Allows the candidates for director of any public utility district (PUD) that is wholly or partially within San Diego County to be elected by subdistricts either: a) Upon adoption of a resolution or ordinance to that effect by the board of directors of the district, subject to approval of the board of supervisors, or b) As a part of a change of organization or a reorganization conducted pursuant to specified provisions of state law. 2)Directs that a resolution or ordinance that divides a district into subdistricts adopted by the district's board of directors must describe the boundaries of the subdistricts so that the subdistricts shall be nearly equal in population. 3)Defines "by subdistricts" as the election of members of the board of directors by voters of the subdistrict alone. Background The Public Utility District Act governs California's 53 PUDs. SB 927 Page 3 The Act empowers a PUD to acquire, construct, own, operate, control, or use works for supplying its inhabitants with light, water, power, heat, transportation, telephone service, or other means of communication, or means for disposing of garbage, sewage, or refuse. The Act requires that the members of the board of directors of a PUD that lies entirely within one county must be elected at-large. The Legislature has created two exceptions to this at-large election requirement: 1)The Georgetown Divide PUD (El Dorado County) can provide for electing the district's directors by wards (AB 1410, N. Waters, Chapter 63, Statutes of 1980). Its board is currently elected at-large. 2)The board of directors of a PUD located in Placer County can provide for electing the district's directors by wards or from wards (SB 1393, Senate Local Government Committee, Chapter 939, Statutes of 1994). The North Tahoe PUD's board is currently elected by-district. The Fallbrook PUD (FPUD) provides retail water, sewer, and recycled water services to approximately 35,000 people residing within its boundaries in northern San Diego County. A lawsuit filed against the district last year in San Diego County Superior Court alleged that the district's at-large board elections violated the California Voting Rights Act by diluting the voting strength of Latino voters, thereby impairing their ability to participate meaningfully in the political process and to elect candidates of their choice (Juan Atilano, Carmen Cardoso, Jesus Hernandez, Jesus Hernandez Jr., and Jose Huerta v. Fallbrook Public Utility District). To avoid potentially lengthy and costly litigation, the parties to the lawsuit negotiated a settlement to resolve the claims against FPUD. The settlement agreement, which is enforced by a recent court order, requires FPUD to change from an at-large method of election to a by-district method of election. FPUD has already begun implementing the changes required by the settlement. In light of the by-district election requirement in the recent court order enforcing the settlement agreement, FPUD officials SB 927 Page 4 want the Legislature to grant the district an exemption from the Public Utility District Act's at-large election requirement. Comments Purpose of the bill. Despite the fact that a recent court order enforcing a settlement agreement requires FPUD to use a by-district method for electing members of its governing board, state law still appears to require the district to elect its board members at-large. To avoid any possible confusion about FPUD's authority to use the by-district election method, this bill enacts an exemption to the statutory at-large election requirement that is similar to exemptions state law grants to two other public utility districts. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified4/21/16) Fallbrook Public Utility District Association of California Water Agencies California Special Districts Association Mexican American Legal Defense and Educational Fund San Diego County Water Authority OPPOSITION: (Verified4/21/16) None received Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119 4/22/16 12:32:06 **** END **** SB 927 Page 5